SITI Cable Network Ltd., the leading Cable Television service provider in India, as part of its commitment for timely implementation of digitization, has received the approval from Foreign Investment Promotion Board (FIPB) to raise Rs. 3240 million from promoter entities.
To capitalize on digitization regime the promoter entities firms has released the first tranche of Rs. 810 million to the company, and the balance tranches will be available as per the business requirements. Cheering on this development the company eyes to gain a clear edge over the competition by offering enhanced TV viewing experience to the consumers and improve its ARPU from current levels. The company has implemented the first phase of digitization of television signals in its key markets of Kolkata, New Delhi and Mumbai. In its Phase-II cities, the company is aggressively seeding the Set-Top-Boxes (STBs) to meet the deadline.
Subscriber wise billing and collection has been initiated in its Delhi & Mumbai market. The Company has made significant progress on billing and collections in Delhi and making a good progress in Mumbai too. The company is far ahead of other operators in terms of subscriber wise billing & collection.
In Kolkata the Company has come over the initial resistance and the billing has been started since Mid February 2013 for over 1 million subscribers.The company estimates that by beginning of the next quarter, the subscriber wise billing & the collection will be in line, once the subscribers choose the channels / packages of their choice and pay accordingly.
As per the approval received from Foreign Investment Promotion Board (FIPB), the company will issue 162 million warrants convertible into equivalent number of equity shares at a price of Rs 20 per warrant. The total promoter shareholding after conversion of all the warrants will rise close to 73 per cent from existing apprx. 63 percent.